RJK Announces Private Placement

Rhea-AI Summary

RJK Explorations (TSXV: RJX.A) has announced a non-brokered private placement to raise up to $350,000. The offering consists of units priced at $0.035 each, comprising one common share and one warrant. Each warrant allows the holder to acquire an additional common share at $0.07 within five years. Insiders are expected to contribute $130,000 to the offering.

The company plans to allocate 70% of the proceeds for diamond drilling of potential kimberlite, base, and precious metal targets, with the remaining 30% for general working capital. The offering is subject to TSX Venture Exchange approval and may close in multiple tranches. Securities issued will have a four-month and one-day hold period.

Positive

• Potential to raise up to $350,000 in capital
• 70% of proceeds allocated for diamond drilling, potentially advancing exploration efforts
• Insider participation of $130,000 indicates management confidence

Negative

• Dilution of existing shareholders due to issuance of new shares
• Warrants could lead to further dilution if exercised

Kirkland Lake, Ontario--(Newsfile Corp. - October 9, 2024) - RJK Explorations Ltd. (TSXV: RJX.A) ("RJK" or the "Company") announces the commencement of a non-brokered private placement for aggregate gross proceeds of up to $350,000 (the "Offering"). The Offering will consist of the sale of units of the Company at a price of $0.035 per unit. Each unit will consist of one common share of the Company (a "Common Share") and one warrant (a "Warrant") entitling the holder to acquire one Common Share for a period of five (5) years from the date of issuance at an exercise price of $0.07. Insiders are expected to subscribe for $130,000 of the Offering.

The Company plans to use the net proceeds raised from the sale of the Units for diamond drilling of potential kimberlite, base and precious metal targets (70% of the proceeds) and for general working capital purposes (30% of the proceeds).

The Offering is subject to customary closing conditions including, but not limited to, receipt of approval of the TSX Venture Exchange (the "TSX-V"). The closing of the Offering may occur in one or more tranches, and is not subject to receipt of a minimum amount of gross proceeds.

The securities issued under the offering will be subject to a four-month and one day hold period pursuant to applicable securities laws and pursuant to a TSX-V hold period.

The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.

Contact Information

Glenn Kasner, CEO
Mobile: (705) 568-7567
Email: info@rjkexplorations.com

Web Site: https://www.rjkexplorations.com

Company Information: Tel: (705) 568-7455

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward Looking Information

This news release includes certain forward-looking statements, which may include, but are not limited to, statements concerning the Offering generally, the proposed use of the proceeds, and the TSXV's final approval of the Offering. Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking, including those identified by the expressions "will", "anticipate", "believe", "plan", "estimate", "expect", "intend", "propose" and similar expressions. With respect to forward-looking statements and information contained herein, we have made numerous assumptions, including assumptions about the receipt of final acceptance by the TSX Venture Exchange and the state of the equity markets. Forward-looking statements involve known and unknown risks and uncertainties that could cause actual results, performance, or achievements to differ materially from those expressed or implied in this news release. Factors that could cause actual results to differ materially from those anticipated in this news release include, but are not limited to, the Company's failure to receive final approval from the TSXV in connection with the Offering. RJK assumes no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those reflected in the forward-looking statements except as required by applicable law.

THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT INTENDED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/226162

FAQ

What is the price per unit in RJK Explorations' (RJKAF) private placement?

The price per unit in RJK Explorations' private placement is $0.035.

How much does RJK Explorations (RJKAF) aim to raise through this private placement?

RJK Explorations aims to raise up to $350,000 through this private placement.

What is the exercise price and duration of the warrants issued by RJK Explorations (RJKAF)?

The warrants have an exercise price of $0.07 and are valid for a period of five years from the date of issuance.

How does RJK Explorations (RJKAF) plan to use the proceeds from the private placement?

RJK Explorations plans to use 70% of the proceeds for diamond drilling of potential targets and 30% for general working capital purposes.